Farming Yield with L2s: A Comprehensive Guide

Are you looking for ways to earn passive income with your crypto assets? Do you want to explore the opportunities of layer 2 solutions that offer faster, cheaper, and more scalable transactions?

Each of these platforms offers unique opportunities for yield farming with L2s, providing a range of yields and strategies to suit different risk profiles and investment goals.

🏔️ AVAX: AnkrAVAX Liquid Staking

Ankr offers a 6.8% APY with AnkrAVAX liquid staking. The yield is backed by validator rewards using ankrAVAX by Ankr. To participate on Avalanche, one can deposit AVAX.

🌐 MATIC: 6X MATICX/MATIC Recursive Staking Strategy on Cian

MATIC offers an 11% APY with the 6X MATICX/MATIC Recursive Staking strategy on Cian. The yield is backed by validator rewards using MATICX as collateral, and looping borrowed MATIC against the MATICX on Aave V3 to achieve 6X leverage. To participate on Polygon, one can deposit into the 6X MATICX/MATIC RECURSIVE Staking strategy on Cian.

🌈 ARB: Radiant Capital on Arbitrum

ARB offers up to 8% net APR looping ARB 1.66X on Radiant Capital on Arbitrum. This yield is accrued in ARB borrowing interest and mostly RDNT rewards. To participate, it requires a leveraged ARB/ARB position with 5% of the value of the looped position in the 80/20 RDNT/ETH Balancer LP. The RDNT LP must be staked for 12 months to achieve 8%. One must deposit ARB into Radiant and loop 1.66X + zap into an LP staked for 1-12 months.

⏱️ OP: Metronome Smart Farming

OP offers up to 15% APY looping OP 3.16X on Metronome Smart Farming. This yield is accrued in all OP yields. Then, one can supply OP or vaOP as collateral on Metronome Smart Farming on Optimism and loop up to 3.16X (when Health Factor = 1.03).

Overview

Please note that all investments carry risks, including the risk of loss. Always do your own research and consider your financial decisions carefully.